Troubled Scottish retail group Quiz Clothing is said to be calling in administrators as it struggles to raise new finance.

Teneo is on standby to take over affairs at the 900-employee chain that could result in a pre-pack deal that will see the Ramzan family regain control of a slimmed down business.

The latest move comes just days after the Glasgow-based company cancelled its shares on the Alternative Investment Market and reverted to private ownership.

It said that leaving the stock market gave it a better chance of survival Just after Christmas it announced a £4.7m loss before tax for the half year to the end of September against £1.5m last year.

It has 62 stores and 47 concessions across the UK but is likely to close a third of its stores to reduce costs.

Quiz said sales had been “disappointing” in the Christmas trading period and that its cash reserves are “less than previously anticipated”.

It said the poor trading was partly because of the “impact of inflationary pressures on consumer confidence and spending”.